Air India Tries To Reduce Debt By Cutting Baggage Allowance

As of May 2, 2024, Air India has updated its domestic flight baggage policy, reducing the maximum baggage allowance from 40 kg to 35 kg. This alteration aligns with market demands and regulatory standards. Newly issued tickets will now grant a baggage allowance of 15 kg. However, tickets issued before May 2, 2024, will retain their original conditions. Notably, Air India's policy stands out from competitors like IndiGo, as it permits multiple bags within the allowance, contrasting with IndiGo's restriction to a single bag and a 15 kg limit. This adjustment aims to streamline operations and ensure compliance with industry standards while maintaining a competitive edge in the aviation market.

In the Economy Comfort category, encompassing fare classes S, T, U, and L, the baggage allowance has been adjusted from the previous 20 kg to 15 kg. Similarly, in the Economy Comfort Plus tier, comprising fare classes G, W, V, Q, and K, the luggage allowance has been revised downward from 25 kg to 15 kg. Conversely, the Economy Flex tier, represented by fare classes H, M, B, and Y, maintains its baggage allowance at 25 kg, consistent with previous standards.

Transitioning to the Business Comfort Plus category, inclusive of fare classes Z and J, the baggage allowance has been reduced from 35 kg to 25 kg. Meanwhile, in the Business Flex tier, encompassing fare classes D and C, passengers continue to enjoy a baggage allowance of 35 kg, albeit down from the previous 40 kg limit.

Noteworthy is Air India's operational shift under the Tata Group's ownership during the fiscal year 2023, following the acquisition in January 2022. Despite this change, the airline encountered fiscal challenges, as evidenced by its financial performance. After accounting for write-offs and exceptional items, the FY23 losses amounted to Rs 11,381 crore, marking an 18.6% increase compared to the FY22 losses of Rs 9,591 crore. These adjustments in baggage policies reflect the airline's efforts to streamline operations, align with industry standards, and cater to evolving market demands. The financial figures underscore the ongoing financial restructuring and challenges faced by Air India, despite changes in ownership and strategic initiatives undertaken.